Wakilii

Sole Electrics (U) Ltd v Town Clerk and Nakibuka Enterprises Ltd (Civil Suit 355 of 1992)

High Court · [1992] UGHC 108 · 1992 Application Partly Allowed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application by 2nd Defendant to dismiss suit, strike out plaint, and set aside interim order
Decision
Part of suit struck out; remainder to proceed to trial

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The Court struck out the plaintiff's claim relating to bidding and sale of the property, finding the plaintiff was not a bidder and had no cause of action. The tenancy claim was allowed to proceed to trial as it raised triable issues requiring evidence. The interim order granted ex parte without hearing the adverse party lapsed for non-compliance with its time limit and was vacated.

Outcome

Part of suit struck out; remainder to proceed to trial

Facts

The plaintiff was a tenant of Kampala City Council in Plot 54 Nasser Road. Kampala City Council advertised the building for sale. The plaintiff alleged it bidded for the property but its bid was unsuccessful. The 2nd defendant was the successful bidder and obtained a certificate of title. The plaintiff continued to occupy the property as tenant, claiming to have paid rent to date. On 25 May 1992, the plaintiff filed suit alleging fraud against the 2nd defendant and obtained an ex parte interim order to maintain status quo until 26 May 1992. The interim application was never heard on 26 May 1992. The 2nd defendant entered appearance on 29 May 1992 and applied to dismiss the suit and set aside the interim order. Evidence showed that a Mr. Suleiman Lule was one of the bidders, not the plaintiff company itself.

Issues

  1. Whether the plaintiff's suit relating to bidding for and purchase of the suit property disclosed a cause of action.
  2. Whether the interim order granted ex parte should be set aside for non-compliance with procedural requirements.
  3. Whether the plaintiff's tenancy claim should be struck out or allowed to proceed to trial.

Orders

  • Application allowed in part.
  • Plaintiff's action relating to bidding, sale and purchase of Plot 5 Nasser Road struck out.
  • Tenancy claim to proceed to trial.
  • Interim order dated 25 May 1992 vacated for lapse of time limit.
  • Plaintiff at liberty to fix main application for temporary injunction if still interested.
  • Costs of the application awarded to the applicant.

Rules and key headnotes

Striking Out — Cause of Action — Lack of Standing
Where a plaintiff was not a bidder for property and there is no evidence that a third party bidder was acting as its agent, the plaintiff has no cause of action to bring proceedings relating to the bidding, sale and purchase of that property.
Separate Legal Personality — Corporate Personality Distinct from Directors
A company has a separate legal personality distinct from its directors and members. The fact that a director participated in bidding in a personal capacity does not mean the company itself was a bidder.
Interim Orders — Ex Parte Orders — Time Limits
Where an interim order is granted ex parte without hearing the adverse party and is expressly subject to a time limit, the order lapses if not heard within that time limit. Such orders must be viewed strictly.
Landlord and Tenant — Tenancy Disputes — Triable Issues
Where a tenant claims subsisting tenancy with a predecessor landlord and the successor in title disputes the tenancy, this raises triable issues requiring evidence and should not be struck out on preliminary objection.

Legislation cited (3)

Cases cited (7)

  • Kangave v Attorney General (1972) U.L.R. 150
  • Auto Garage T. Motoko V. 1971 514
  • Kayondo S.C. v Attorney General [1991] K.L.R. 37
  • Makula International v Cardinal Nsubuga (H.C. Civil Suit No. 1324 of 1978)
  • Wenlock v Moloney [1965] 1 WLR 1238
  • Mohamed v Patel [1956] E.A.C.A. 80
  • Salomon v Salomon & Co [1897] A.C. 22

Full judgment

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The original judgment as reported. Read the original PDF before relying on any passage.

Sole Electrics (U) Ltd v Town Clerk and Nakibuka Enterprises Ltd (Civil Suit 355 of 1992) [1992] UGHC 108 (16 July 1992)
Source: this page presents Wakilii’s issue analysis and metadata for a publicly reported Ugandan judgment. Any AI-generated summary is marked as such. Judgment text is sourced from the Uganda Legal Information Institute (ulii.org). Wakilii is not affiliated with ULII.